Louisiana-Pacific Climbs After Analyst Upgrade

Shares of Louisiana-Pacific Corp. climbed Wednesday after an analyst upgraded his rating based on the company's progress in meeting financial challenges and the stock's recent price decline.

Steven Chercover of D.A. Davidson upgraded shares to "Buy" from "Neutral" after the Nashville, Tenn., company's third-quarter results, which beat analyst expectations, showed it can generate cash.

Besides strong cash generation, Louisiana-Pacific has sold bonds and issued equity, Chercover added.

Sterne Agee analyst Mark Connelly also said the company is showing it "can breakeven, even in a sloppy market."

Deutsche Bank analyst Christopher Chun said the company "now appears to be largely past liquidity concerns, and cost structure appears much more suited to weak market conditions."

Louisiana-Pacific shares have fallen 21 percent since Oct. 1, said Chercover. By contrast, the S&P Paper and Forest Products index has gained 6 percent since Oct. 1.

In midday trading, the stock rose 30 cents, or 5.7 percent, to $5.56. In the last 12 months, shares have ranged from $1.03 to $8.05.

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.